Elk Petroleum Limited is pleased to advise that the Company has finalized and executed an agreement to purchase carbon dioxide (CO2) supplies in Nebraska.
Reaching final agreement follows aperiod of negotiations and due diligence after the parties signed a letter of intent, which was announced to the market on 27 November 2013.
This earlier announcement provided background on the CO2 source and Elk’s plans for its application toCO2--?based enhanced oil recovery (EOR) project sin the area shown in the map below. Elk has rights to acquire the Single ton oilfield, which will be the anchor project for planned multiple oil field developments in Elk’s area of interest (AOI).
Elk’s Chief Executive Officer, Dr. Scott Hornafius, commented “Finalization of this agreement with Bridgeport is the first step in opening anew focus area for Elk; Elk look forward to working with Bridgeport to get an EOR project up and going as soon as possible.
Elk is now working with local and owners, authorities and the community to establish a right of way for construction of a pipeline from Bridgeport’s plant to the Single ton oil field.
Elk has commissioned a number of design studies to settle a development planned will then commence detailed design.
We are also scooping out funding needs and plans.
We want to get our initial EOR project up and going as soon as possible to further establish
Elk’s capability in this CO2--?based EOR project sector using anthropogenic or industrial sourced CO2.”
The Singleton oil field is the largest oil field in this area and will act as the anchor project to underpin Elk’s development plans for injecting purchased and recycled CO2 over an extended period. Inclusion of other oil fields into the development plan could lead to a multi--?fold increase in the level of additional enhanced oil recovery that is possible.